Publicly listed enterprise resource planning (ERP) specialist JCurve Solutions has experienced revenue and net profit losses for the financial year ending 30 June 2020, as it felt the impact from the COVID-19 pandemic.
Revenue was down 11 per cent to $11.2 million while net profit after tax tumbled into the red at $335,419, in comparison to last year, which was $338,114 in the black. Earnings before tax also took a 21 per cent hit down to $670,501.
The company told shareholders it achieved strong revenue growth within its Asian operations -- at 283 per cent, and its Riyo division (2232 per cent) in FY20, but the impact of the COVID-19 pandemic was particularly significant on the Australian ERP new business sales results for the fourth quarter of FY20.
In his letter to shareholders JCurve chairman, Bruce Hatchman said its results over the past six months have been adversely affected by the unprecedented events related to the COVID-19 pandemic, as a number of expected large ERP and Riyo new business opportunities in Australia and Asia were lost or delayed.
“COVID-19 accelerated business change and we are starting to see higher levels of interest in cloud adoption and digital transformation, especially in Asia which JCurve is well positioned to take advantage of once the financial restraints from the COVID-19 pandemic on customers is reduced,” Hatchman said.
JCurve assured shareholders it was still committed to rapidly expanding its Asian operations, grow its Oracle NetSuite ERP practice in Australia and Riyo business at a faster pace through both direct and channel partnerships.
As a result of the pandemic, JCurve itself undertook cost saving initiatives including pay freezes and waiving executive team bonuses.
“While these are challenging times, I can assure JCurve is well positioned… the board and management teams are working diligently to ensure that JCurve not only survives but is ready to take advantage of the technological changes that will arise as businesses adapt to a changing world,” he said.
Hatchman said the company continued to have a strong financial position with annual ERP recurring revenue streams exceeding $7 million, a $4.2 million cash balance at June 30, no external debt, and ensuring it was in a “strong position to take advantage of M&A opportunities as they arise.”
Hatchman added it was continuing to explore acquisition opportunities in Australia and Asia relating to product IP and complementary opportunities for its existing software solutions.
“After implementing a number of cost saving initiatives and having a strong financial position, directors remain confident that JCurve will not only withstand the implications of COVID-19 pandemic and general downturn in market conditions, but will emerge stronger,” he said.